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Severance pay

Dismissal: when severance pay is due

Someone who worked for one employer for about a year or more and was dismissed is generally entitled to severance pay. Below is who qualifies and how it is calculated.

In short

What severance pay is
Severance pay (פיצויי פיטורים) is a payment the employer must make to an employee dismissed after working for them, or at the same workplace, for a year or close to a year (חוק פיצויי פיטורים, תשכ"ג-1963). The base amount is one month's salary for each year worked. Severance can be claimed within 7 years of the dismissal.

What to do

What to do

First check the entitlement, then calculate the amount, and then send a written demand.

  1. Check your entitlement

    The right generally arises on dismissal after a year of work for one employer or at one workplace. In certain cases severance is also due on resignation for specific recognised reasons.

  2. Calculate the amount

    The base calculation is one month's salary for each year worked. For hourly workers with a variable schedule, the calculation uses the average scope of employment over the whole period of work.

  3. Demand payment in writing

    Send the employer a written demand with the calculation. Part of the amount may already sit in the pension fund if §14 applies, which is worth checking.

  4. Go to court if refused

    If the severance is not paid, it can be recovered through the labor court. Delayed payment may itself carry additional compensation. The procedure for filing a claim is covered in a separate guide linked below.

What the right rests on

What the law says

When severance is due
An employee dismissed after working a year (or close to a year) for one employer or at one workplace is generally entitled to severance pay.Source: חוק פיצויי פיטורים, תשכ"ג-1963, per kolzchut.org.il
Amount and limitation period
The base amount is one month's salary for each year worked. Severance can be claimed within 7 years of the dismissal.Source: חוק פיצויי פיטורים, calculation and התיישנות, per kolzchut.org.il

This is not legal advice but a general explanation of your rights. Entitlement and the exact amount depend on the circumstances; a professional or the labor court can clarify them.

Common questions

The essentials

Related reading

Related guides

So it doesn't happen again

So that entitlements are documented

This guide cannot recover an existing debt from work outside the platform. For shifts worked through the platform, hours and terms are recorded automatically and a case about non-payment is opened in a single tap.

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